Rotary Encoder Help

Final conclusion before buying the rotary sensor..What is better solution, example 1 or example 2 ?

example 1

 int val; 
 int encoder0PinA = 3;
 int encoder0PinB = 4;
 int encoder0Pos = 0;
 int encoder0PinALast = LOW;
 int n = LOW;

 void setup() { 
   pinMode (encoder0PinA,INPUT);
   pinMode (encoder0PinB,INPUT);
   Serial.begin (9600);
 } 

 void loop() { 
   n = digitalRead(encoder0PinA);
   if ((encoder0PinALast == LOW) && (n == HIGH)) {
     if (digitalRead(encoder0PinB) == LOW) {
       encoder0Pos--;
     } else {
       encoder0Pos++;
     }
     Serial.print (encoder0Pos);
     Serial.print ("/");
   } 

   encoder0Pos = encoder0Pos % 1024;
   encoder0PinALast = n;
 }

example 2

#define encoder0PinA  2
#define encoder0PinB  4

volatile unsigned int encoder0Pos = 0;

void setup() { 

  pinMode(encoder0PinA, INPUT); 
  digitalWrite(encoder0PinA, HIGH);       // turn on pullup resistor
  pinMode(encoder0PinB, INPUT); 
  digitalWrite(encoder0PinB, HIGH);       // turn on pullup resistor

  attachInterrupt(0, doEncoder, CHANGE);  // encoder pin on interrupt 0 - pin 2
  Serial.begin (9600);
  Serial.println("start");                // a personal quirk

} 

void loop(){
// do some stuff here - the joy of interrupts is that they take care of themselves
}

void doEncoder() {
  /* If pinA and pinB are both high or both low, it is spinning
   * forward. If they're different, it's going backward.
   */
  if (digitalRead(encoder0PinA) == digitalRead(encoder0PinB)) {
    encoder0Pos++;
  } else {
    encoder0Pos--;
  }

  encoder0Pos = encoder0Pos % 1024;
  Serial.println (encoder0Pos, DEC);

}